to be Resuscitated (Hopefully)
Jakovljevic - April 5th,
In February, Fujitsu Limited announced its intention to acquire 100% ownership
of GLOVIA International LLC, a California-based provider of business applications,
e-commerce solutions, advanced technology, and world-class services for
the digital marketplace, in which it currently holds a 30.5% interest.
Based on a recently signed Memorandum of Understanding and subject to
standard transaction closing conditions, Fujitsu intends to acquire by
April 2000 the outstanding 69.5% interest in GLOVIA International now
held by UK-based MDIS.
making GLOVIA International a wholly owned subsidiary, Fujitsu intends
to aggressively promote the web-enabled GLOVIA Enterprise Resource Planning
(ERP) package software solution on a global basis in support of its Internet-focused
solutions business strategy. In addition to the acquisition of MDIS's
interest in GLOVIA International, the proposed transaction includes a
perpetual license and rights to all source code for the Pro IV technologies
underlying the GLOVIA products.
a total solutions provider of high-quality products and services, Fujitsu
is making the fullest possible use of the Internet to provide a wide range
of solutions that meet the diverse needs of customers and society around
the world," commented Naoyuki Akikusa, President of Fujitsu Limited. "With
our 'Everything on the Internet' business strategy building momentum,
GLOVIA's 100 percent Web-enabled software and e-commerce initiatives will
play a key role in helping us provide new and existing customers with
technology and solutions to run their digital enterprises and boost their
competitiveness in the global economy."
Furukawa, Group President, Application Software Business Group and Network
Service Business Group, and Member of the Board of Fujitsu Limited, stated:
"Through the rapid deployment of advanced business solutions, GLOVIA has
delivered competitive advantages to many excellent customers throughout
the world. GLOVIA's short implementations and modular solutions make it
well positioned to assist customers in adapting to the business changes
brought on by the Internet."
O'Malley, President and CEO of GLOVIA International remarked, "I believe
that the strength of the GLOVIA technology with the full backing of Fujitsu
will allow GLOVIA to play a key role in the global B2B e-commerce market."
The GLOVIA/Fujitsu relationship dates back to 1992, when Fujitsu became
a key distributor of the GLOVIA ERP package in the Asia-Pacific region,
followed by Fujitsu becoming a strategic customer deploying the GLOVIA
product suite in twenty-three of its factories worldwide. Fujitsu continued
the relationship by becoming a co-development partner and eventually part
owner of GLOVIA in 1997.
captured a number of renowned customers owing to its advanced offering
at that time - a Web-enabled, modular product that was a close fit for
some highly engineering involving industries (like electronics and automotive)
and relatively fast implementations of between six to nine months. Its
golden moment was replacing SAP as a solution for Dell Computer's manufacturing
and supply chain management in 1998.
1999 turned out to be sour. In July 1999, the word about a turmoil within
GLOVIA's Asian operations spread. Shortly afterwards, the analyst community
learned that the problems were both severe and global in scope. GLOVIA
worldwide missed its numbers in Q1/Q2 1999. When MDIS (the other parent
company besides Fujitsu) announced its Q2 results in July 1999, it said
that it wanted to "reduce its exposure to the ERP industry." Shortly after
that, Glovia laid off most of its direct Asian sales & support personnel.
The announcement was that Fujitsu was going to take over sales and support
throughout Asia. The layoff of about 45 people from its U.S. operations
including about half of the sales force ensued too. GLOVIA has been hardly
palpable ever since, due to unwillingness of both of its parents to commit
additional funds to keeping its operations running.
has been a long-time distributor and user of GLOVIA's Web-based ERP products.
We consider crucial the fact that Fujitsu acquired Pro-IV, a proprietary
development tool, thereby eliminating the last impediment for its control
of the whole GLOVIA operation. The purchase also gives the struggling
GLOVIA much deeper pockets and global visibility as it continues to attack
the low- and mid-market project-based manufacturing industry.
GLOVIA is generally suited for manufacturers within the automotive, capital
equipment, electronics, telecommunications, and industrial products industries.
Companies needing software to address mixed-mode manufacturing (Engineer-to-Order
through Repetitive), projects and contracts, and service management, may
want to include GLOVIA on an initial list of vendors for a particular
software selection. However, due to recent staff upheavals, potential
clients in North America should conduct thorough research on available
resources and reference sites of a regional GLOVIA office or an affiliate
service provider when GLOVIA is included in the selection process.
also encourage existing and potential users to familiarize themselves
with the company's products offerings, since we believe that they will
be in a position to better leverage their negotiating position with all
vendors involved in a particular selection exercise.